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Is It Time To Buy Gold And Silver?

Commentaries & Views

Now that the metals have hit our downside targets and have bounced, is it time to buy? The answer is not as easy as one might think. As an investor, you can always buy as long as you are investing money that you don’t need for the mortgage, car payment or other daily living expenses.

As a trader, the buy was near the $1,180 level. It’s now time to watch and see how far this bounce can take gold. Somewhere between $1,210 and $1,240 should be resistance. We are looking for the markets to consolidate before making the next big move, which we believe will be higher.

The trend is still down and until that changes, there is no reason to believe that gold will continue to rally. The key here is the pattern that develops. We are not sellers but are not aggressive buyers either. Since all markets are born out of consolidation, being patient enough to wait and observe is often the best trade.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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